Cellpay Case Study
Reduction in declines
Cellpay, rated number five in 2020 on America’s Fastest Growing Companies list by Inc. 500, provides consumers with an easy way to make online payments, prepay and refill a phone plan. Their solution setup is as easy as selecting your provider, submitting your phone number, choosing a plan, and sending a payment. It is a simple and secure way to make payments, and does not require disclosing much personal information.
The Fraud Problem
Due to the nature of the prepay industry, Cellpay was a prime target for fraud from the get go. Parves Jasani, founder and CEO of Cellpay, was quick to anticipate and tackle the obvious fraud vulnerability challenge.
Unlike jewelry, electronics or other merchandise that require a physical pick up at a physical address, sending funds to pay for a phone bill is a relatively easier venture for a thief to pull off. Fraudsters can obtain a stolen credit card or gift card and use it to make a prepayment on their own or on an accomplice’s phone plan. Once a payment is made, the money is automatically applied to the account and cannot be retrieved.
Other Fraud Solutions
In 2016, when the company was first established, Jasani attempted to address his fraud concerns by implementing a self-managed, rules based fraud prevention solution. It quickly became apparent that going that route was not a good choice for his company.
Fraud was evolving very quickly, and his rule set could not keep up with the ever-changing schemes while keeping a healthy order approval rate. Additionally, his fraud chargeback losses kept mounting.
Jasani then opted to look for a fully managed solution that alleviated the need for him to get involved in the decision making and staying up to date on the latest fraud trends. At first, the solution he partnered with seemed like a great fit, as his chargeback rate stopped soaring, even though the approval rate remained the same as it did when he was using the initial rules-based system, which was 95%.
However, Jasani, a keen businessman, kept a careful eye on his order approval rate, knowing that this is a key metric and has the biggest impact on the lifeblood of his business–revenue. After a few months of using the fully automated solution, unfortunately, there was a significant leap in chargebacks, and then a disheartening dive in the company’s order approval rate.
It did not take long for Cellpay’s approval rate to drop to 80%.
Jasani was certain he was losing many legitimate transactions. He felt the solution was too automated and rigid and operated as a “One Size Fits All” engine. Despite multiple requests for remediation, there was no improvement in the order approval rate. Realizing that this particular fraud prevention solution was not a good fit, he continued his search for a vendor that was more flexible in its model and more in tune with its customers’ needs.
Parves Jasani came across NoFraud in his online search for fraud prevention technology. He was most attracted to their advertised high approval rates and ability to tailor their solution to a company’s needs. His initial phone call with Allon, VP of Sales, sounded very promising and he was hopeful that the NoFraud approach would be a better fit. Jasani was impressed with the fast response time, the availability of the NoFraud team and the attention they gave to explaining the intricacies of the system.
The NoFraud Difference
Approval rates at Cellpay now reach 98% and Jasani is confident that he chose the right partner.
Integrating the NoFraud solution was straightforward and the support team was responsive when a question did arise. Within hours of turning on the solution, Jasani immediately appreciated the difference in the NoFraud approach, specifically the combination of machine learning with human oversight. He felt that the “human touch” is what instantly set NoFraud apart from the previous solutions he tried. At NoFraud, weekly meetings are set to review Cellpay’s fraud trends and key success metrics, ensuring optimal NoFraud performance and customer satisfaction.
In his words, “While it did take a few tries to find the right fraud partner, I can finally say that I can now live happily, without stress, and focus on growing my business.” Indeed, Cellpay has made several acquisitions and one of the first changes to be made with the new businesses: Installing the NoFraud solution.
“Not only are the teams at NoFraud intuitive and transparent about their decisions and analysis, they actually care that my company should do better and prosper.”Parves Jasani
Founder & CEO, Cellpay
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